A Major Question in Modern Finance Regarding Closed-End Investment Companies

question 17

Multiple Choice

A major question in modern finance regarding closed-end investment companies is

• A) Why do these funds sell at discounts?
• B) Why do the discounts differ between funds?
• C) What are the returns available to investors from funds that sell at a large discount?
• D) Choices a and b only
• E) All of the above

---

Definitions:

Resources

Refers to a broad range of assets, including financial, human, technological, and natural resources, available for use in the production of goods or delivery of services.

Need for Affiliation

A person's desire to build and maintain interpersonal relationships and be part of a group.

Entrepreneurship

The process of designing, launching, and running a new business or venture, often characterized by innovation and risk-taking.

Internally Driven

Motivated or influenced by factors within oneself or within an organization, such as internal goals, values, or missions, rather than external pressures or demands.